INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT

Course Objectives

  • To equip students, entrepreneurs and practitioners to understand the investments field and to practice for sound investment decisions making.
  • To emphasize both theoretical and analytical aspects of investment decisions and deal with modern investment theoretical concepts and instruments.

UNIT I Introduction to Investment

Investment Objectives – Investment Process – Avenues of Investment – Investment and Speculation – Investment information – Risk and Return – Types of Risk - Risk Return Trade off – Risk Exposure – Expected Return - Risk and Return analysis of individual securities – Standard Deviation

UNIT II Securities Market

Capital market – Primary market and Secondary market – process of IPO –FPO– Listing of Securities – Secondary market trading and operations – Regulating bodies – SEBI – Stock exchanges – Stock exchanges in India – BSE – NSE –SEBI act – SCRA– Index Calculation – Global Index – Global exchanges.

UNIT III Fundamental and Technical Analysis

Fundamental analysis: Economic analysis – Economic forecasting and Stock Investment Decisions. Industry analysis – Industry classification - Industry life cycle – Evaluating Industry Relevant factors. Company Analysis – Forecasting earnings. Technical Analysis – ROC –MACC – Oscillators –Trends – RSI

UNIT IV Valuation of Securities

Valuation of Securities – Valuation of Equity – dividend discount model – Zero Growth Model – Constant Growth Model. Valuation of Preference shares – Valuation of Bonds – YTM – YTC Arbitrage pricing Theory – CAPM – EMH.

UNIT V Portfolio Management

Portfolio Management – Steps in Portfolio Construction – Diversification – types of Diversification – Portfolio Risk and Return analysis – Marcowitz portfolio selection model. Portfolio Evaluation – Jenson Index – Sharpe Index – Treynor’s Index –– Portfolio Revision – Optimal Portfolio

Learning Resources

  • Security Analysis and Portfolio Management, VA Avadhani Pearson Publications.
  • Fundamentals of Investment Management, Hirt and Block, Tata McGraw Hill. Ed 2009.
  • Portfolio Management Handbook, Robert A. Strong, Jaico Publishing House, Mumbai.
  • Security Analysis and Portfolio Management, Prasanna
  • Chandra, Tata McGraw Hill.

@ 2020 - 2021 Copyright, SRM Institute of Science and Technology (formerly known as SRM University), All Rights Reserved